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Products & Services

Credit Insurance Policies


SCR or Standard Policy
Small Exporters Policy
Specific Shipment Policy - Short Terms (SSP -
ST)
Export (Specific Buyers) Policy
Export Turnover Policy
Buyer Exposure Policy
Multi Buyer Exposure Policy
Consi!nment Exports Policy (Stoc" #oldin!
$!ent)
Consi!nment Exports Policy (%lo&al Entity)
Service Policy
Soft'are Pro(ect Policy
)T Ena&led Services (Specific Customer )
Policy
Construction *or"s Policy
Specific Policy for Supply Contract
)nsurance Cover +or Buyer,s Credit $nd -ine
.f Credit
Full Fledged Factoring
Guarantees to Banks
Pac"in! Credit %uarantee
Export Production +inance %uarantee
Post Shipment Export Credit %uarantee
Export +inance %uarantee
Export Performance %uarantee
Export +inance (.verseas -endin! )
%uarantee
Special Schemes
Transfer %uarantee
.verseas )nvestment %uarantee
Exchan!e +luctuations Ris" Cover
EC%C
Export credit %uarantee Corporation of )ndia ltd/ 'as esta&lished in 0123 &y !ovt/ of
)ndia and it functions under the ministry of commerce and industry4 dept of commerce/
EC%C provides
$ ran!e of credit ris" insurance covers a!ainst loss in export of !oods and services
%uarantee to &an"s and financial institutions to ena&le exporters to o&tain &etter facilities
from them/
.verseas investment insurance to )ndian companies investin! in (oint ventures a&road in
the form of e5uity or loan/
+or exporters EC%C
.ffers insurance protection to exporters a!ainst payment ris"s
Provides !uidance in export related activities
Ma"es availa&le information on different countries 'ith its o'n credit ratin!s
Ma"es it easy to o&tain export finance from &an"s and financial institutions
$ssists exporters in recoverin! &ad de&ts
Provides information on credit 'orthiness of overseas &uyers/
6eed for export credit insurance
Payments for exports are open to ris"s even at the &est of times/ The ris"s have assumed
lar!e proportions today due to the far-reachin! political and economic chan!es that are
s'eepin! the 'orld/ $n out&rea" of 'ar or civil 'ar may &loc" or delay payment for
!oods exported/ $ coup or an insurrection may also &rin! a&out the same result/
Economic difficulties or &alance of payment pro&lems may lead a country to impose
restrictions on either import of certain !oods or on transfer of payments for !oods
imported/ )n addition4 the exporters have to face commercial ris"s of insolvency or
protracted default of &uyers/ The commercial ris"s of a forei!n &uyer !oin! &an"rupt or
losin! his capacity to pay are a!!ravated due to the political and economic uncertainties/
Export credit insurance is desi!ned to protect exporters from the conse5uences of the
payment ris"s4 &oth political and commercial4 and to ena&le them to expand their
overseas &usiness 'ithout fear of loss/
SCR or Standard Policy
Shipments (Comprehensive Ris"s) Policy4 commonly "no'n as the Standard Policy4 is
the one ideally suited to cover ris"s in respect of !oods exported on short-term credit4 i/e/
credit not exceedin! 078 days/ This policy covers &oth commercial and political ris"s
from the date of shipment/ )t is issued to exporters 'hose anticipated export turnover for
the next 09 months is more than Rs/28 lacs/
:nder the Standard Policy4 EC%C covers4 from the date of shipment4 the follo'in! ris"s;
a. Commercial Risks
)nsolvency of the &uyer/
+ailure of the &uyer to ma"e the payment due 'ithin a specified period4 normally
four months from the due date/
Buyer,s failure to accept the !oods4 su&(ect to certain conditions/
b. Political Risks
)mposition of restriction &y the %overnment of the &uyer,s country or any
%overnment action4 'hich may &loc" or delay the transfer of payment made &y
the &uyer/
*ar4 civil 'ar4 revolution or civil distur&ances in the &uyer,s country/ 6e' import
restrictions or cancellation of a valid import license in the &uyer,s country/
)nterruption or diversion of voya!e outside )ndia resultin! in payment of
additional frei!ht or insurance char!es 'hich can not &e recovered from the &uyer/
$ny other cause of loss occurrin! outside )ndia not normally insured &y !eneral
insurers4 and &eyond the control of &oth the exporter and the &uyer/
Guarantees to Banks
Packing Credit Guarantee
Timely and ade5uate credit facilities at the pre-shipment sta!e are essential for
exporters to reali<e their full export potential/ Exporters may not4 ho'ever4 &e
easily a&le to o&tain such facilities from their &an"ers for several reasons4 e/!/
the exporter may &e relatively ne' to export &usiness4 the extent of facilities
needed &y him may &e
out of proportion to the e5uity of the firms or the value of collateral offered &y the
exporter may &e inade5uate/ The Pac"in! Credit %uarantee of EC%C helps the exporter
to o&tain &etter and ade5uate facilities from their &an"ers/ The %uarantees assure the
&an"s that4 in the event of an exporter failin! to dischar!e his lia&ilities to the &an"4
EC%C 'ould ma"e !ood a ma(or portion of the &an",s loss/ The &an" is re5uired to &e
co-insurer to the extent of the remainin! loss/
Exchan!e +luctuation Ris" Cover is availa&le for payments scheduled over a period of 09
months or more4 up to a maximum of 02 years/ Cover can &e o&tained from the date of
&iddin! ri!ht up to the final installment/ $t the sta!e of &iddin!4 an exporter=contractor
can o&tain Exchan!e +luctuation Ris" (Bid) Cover/ The &asis for cover 'ill &e a
reference rate a!reed upon/ The reference rate can &e the rate prevailin! on the date of &id
or rate approximatin! it/ The cover 'ill &e provided initially for a period of t'elve
months and can &e extended if necessary/ )f the &id is successful4 the exporter=contractor
is re5uired to o&tain Exchan!e +luctuation (Contract) cover for all payments due under
the contract/ The reference rate for the contract cover 'ill &e either the reference rate
used for the Bid Cover or the rate prevailin! on the date of contract4 at the option of the
exporter=contractor/ )f the &id is unsuccessful 32 percent of the premium paid &y the
exporter=contractor is refunded to him/